Wabtec price target raised to $115 after GE deal at Stifel. Stifel analyst Michael Baudendistel raised his price target on Wabtec (WAB) shares to $115 from $106 after the company announced a deal to combine with GE Transportation (GE), saying he likes the deal for numerous reasons, including the potential for very significant accretion; the potential that added Wabtec content in freight locomotives "could be immense"; the likely opportunity for facility consolidation in locations where locomotives are serviced; and his view that DOJ and other regulators should be manageable. Baudendistel keeps a Buy rating on Wabtec shares.

Wabtec price target raised to $115 after GE Transportation deal at Stephens. Stephens analyst Justin Long said Wabtec's (WAB) "transformational" merger agreement with GE Transportation (GE) will essentially double the size of the company, create a global leader in rail equipment, services and software and create significant financial and strategic benefits over the long-term. The analyst, who also feels it is a "well timed transaction," raised his price target on Wabtec to $115 from $98 and keeps an Overweight rating on the shares.

GE Transportation deal represents 'good progress,' says Citi. General Electric's (GE) agreement to combine its Transportation business with Wabtec (WAB) represents "good progress" in CEO John Flannery's plans to drive to a more simplified and better executing enterprise, Citi analyst Andrew Kaplowitz tells investors in a research note. He views the transaction as representing "good value realization" for GE and its shareholders. However, with the deal expected to close in early 2019, the analyst believes GE's target of generating $5B-$10B in disposition proceeds this year is likely now limited to the low end of that range. Nevertheless, the company could still end the year with close to the $15B in Industrial cash that management has noted as a year-end target, Kaplowitz contends. He keeps a Buy rating on GE shares.

Stocks opened sharply higher as trade tensions between China and the U.S. have eased for the time being. The market added some additional gains during the opening hours of trading but once the averages found a level, they moved in a narrow range. With today's advance, the Dow moved back above 25,000 for the first time since early March. ECONOMIC EVENTS: In the U.S., the Chicago Fed National Activity Index had an April reading of 0.34, versus the consensus call for a reading of 0.25. COMPANY NEWS: Shares of General Electric (GE) advanced 2% after the company announced an agreement to combine its locomotive making operations, GE Transportation, with Wabtec (WAB). Under the agreement, GE will receive $2.9B in cash at closing and GE and its shareholders will receive a 50.1% ownership interest in the combined company, with Wabtec shareholders retaining 49.9% of the combined company. Based on Wabtec's stock price on April 19, the value of the transaction is approximately $11.1B, or $10B when adjusted for tax benefits accruing to the combined company... In other M&A news, LaSalle Hotel Properties (LHO) announced an agreement to be acquired by affiliates of Blackstone (BX) for $33.50 per share in an all-cash transaction valued at $4.8B. Pebblebrook Hotel (PEB), which has made a public proposal to merge with LaSalle, said its offer is "substantially superior to the merger agreement that LaSalle has reached with Blackstone". LaSalle shares finished about 5% higher at $33.61 following the news... Meanwhile, shares of WWE (WWE) surged 12.5% after ESPN's Darren Rovell reported that the company has agreed in principle to a deal to make Fox (FOXA) the new home of "SmackDown Live." The Hollywood Reporter later said that the two sides are close to a new five-year deal for "SmackDown" rights worth over $1B... Tesla (TSLA) was in focus after Consumer Reports said that it "found plenty to like" about the company's Model 3, but added that its testers "also found flaws - big flaws - such as long stopping distances in our emergency braking test and difficult-to-use controls," which "keep the Model 3 from earning a Consumer Reports recommendation." Moreover, Alamada County Sheriff's Office spokesman Ray Kelly said that authorities are investigating the death of a man after a Tesla car he was driving veered off a road and crashed into a pond in the San Francisco Bay Area, according to the Associated Press. MAJOR MOVERS: Among the noteworthy gainers was Dave & Buster's (PLAY), which rose 6% after Maxim raised its price target on the shares to $68 from $62, saying that the company's launch of VR gaming and its "revamped" Eat 'N Play food/beverage value platform will prove to be catalysts. Also higher was Energizer (ENR), which gained 6% after Jefferies upgraded the stock to Buy from Hold, saying the company's valuation gap to peers could close amid improving trends in the battery category and potential synergy upside from the Spectrum deal. Among the notable losers was Baidu (BIDU), which fell 5% after it agreed to divest its Global DU business. Also lower was Qudian (QD), which dropped nearly 17% after reporting quarterly results. INDEXES: The Dow rose 298.20, or 1.21%, to 25,013.29, the Nasdaq gained 39.70, or 0.54%, to 7,394.04, and the S&P 500 advanced 19.73, or 0.73%, to 2,732.70.

HIGHER: MB Financial (MBFI), up 16% after signing a definitive agreement to merge with Fifth Third Bancorp (FITB) in a transaction valued at approximately $4.7B... General Electric (GE), up 3% after GE Transportation announces agreement to combine with Wabtec (WAB). GE will receive $2.9B in cash at closing and GE and its shareholders will receive a 50.1% ownership interest in the combined company, with Wabtec shareholders retaining 49.9% of the combined company... Micron (MU), up 5% after the company announced raised third quarter guidance in advance of its analyst and investor event later today. LOWER: Fifth Third Bancorp, down 5% after announcing definitive merger agreement with MB Financial... Prothena (PRTA), down 7% after Barclays analyst Geoffrey Meacham downgraded the stock to Underweight and cut his price target for the shares to $12 from $14. DOWN AFTER EARNINGS: Cheetah Mobile (CMCM), down 3%... Qudian (QD), down 7%.

Wabtec (WAB) says to retain name following GE Transportation (GE) deal. Comments taken from the conference call discussing the proposed $11.1B transaction. Wabtec is up 2.2% in premarket trading, while GE is up 2.7%.

GE (GE) will receive a $2.9 billion up-front cash payment, and GE and its shareholders will receive a 50.1% ownership interest in the combined company. Based on Wabtec's (WAB) stock price on April 19, 2018, the last unaffected trading day prior to media speculation regarding a potential transaction, the value of the transaction is approximately $11.1 billion. When adjusted for the net tax step-up value of $1.1 billion accruing to the combined company, the transaction value is $10 billion. The transaction is expected to be tax free to the companies' respective shareholders. Wabtec and GE Transportation will be combined in a transaction in which GE will (i) sell a portion of the assets of GE Transportation to Wabtec; (ii) complete the spin-off or split-off of a portion of GE Transportation to GE shareholders; and (iii) immediately thereafter merge GE Transportation with a wholly owned subsidiary of Wabtec. Upon closing, Wabtec shareholders will own approximately 49.9%, and it is planned that GE shareholders will own approximately 40.2%, and GE will own 9.9% of the merged company on a fully diluted basis. GE has the right to increase the portion of the merged company owned by GE shareholders.

Effective immediately, Wabtec (WAB) Chairman Albert J. Neupaver has been re-appointed executive chairman of the company, while Raymond T. Betler remains Wabtec's president and CEO. Following the completion of the transaction, Stephane Rambaud-Measson will become president and CEO of Wabtec's Transit Segment; and Rafael Santana, president and CEO of GE Transportation (GE), will become president and CEO of Wabtec's Freight Segment.